Shares in online package holiday provider On The Beach (OTB) were down 3% to 139p in morning trading despite it reporting record TTV (total transaction value) of £1.2 billion (representing an 15% increase from 2023) for the financial year ending 30 September.

Commenting on the trading update, On The Beach’s CEO Shaun Morton said the company had made considerable progress over the past 12 months through a period of flight price inflation and deflation.

The trading update was in advance of announcing preliminary results on 3 December 2024.

RYANAIR TIE UP

The company said that adjusted pre-tax profit was in line with market expectations despite incurring significant one-off costs related to the Ryanair (RYAAY:NASDAQ) integration.

In May, On The Beach signed a long-term distribution agreement with Michael O’Leary’s low-budget airline which allows its customers to secure free and fair access to Ryanair’s seat supply.

The online package holiday provider said it will end its financial year debt free with a strong cash position of circa £95 million ‘providing significant balance sheet flexibility’.

ASSET LIGHT MODEL

Analysts at Shore Capital were upbeat about the prospects for the online package holiday provider which they note is ‘asset light’, not having a chain of physical stores to support.

They said in a note: ‘Full year 2025 appears to have begun well with winter 2024 volumes said to be ahead by 34% and summer 2025 bookings very encouraging.

‘We believe this run-rate underpins full year 2025 forecasts which see an average mid-single revenue growth and improving profitability, an EBITDA (earnings before interest taxation depreciation amortisation) margin of circa 23% (remaining below pre-pandemic levels).

‘We expect profitability to be supported by operational leverage and ongoing demand for premium and long-haul holidays.’

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